|Received:||6/27/2006 8:00:10 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:To whom it may concern I am an independent business owner powered by Quixtar and am concerned about the proposal from the FTC. The biggest thing that concerns me is the need to have more rules and regulations. I am all for trying to create a fair system that provides opportunities for individuals to go out and enterprise. Also, it is good to try and stop illegal schemes and pyramids under the current laws. However, if one thinks that more rules and regulations will fix the problem then they are mistaken. More rules will make it more difficult for the individual who is honest and fair to remain honest and fair. However, those who are liars and cheats under the current system will remain so and not be stopped simply because there are more rules. If people are currently breaking the rules they will continue to break the rules no matter how many rules there are. Below is outlined some of the specific reasons Problem 1: Prospects would have to wait 7 days after receiving disclosures before they could register. Solution: Eliminate the waiting period, at least for opportunities like Quixtar where a prospect can get his money back if not satisfied. Problem 2: You would be required to give every prospect a list of "references" – the names, addresses, and phone numbers of 10 other IBOs in the area – seven days before the prospect registers. This requirement would infringe on the privacy of every IBO whose name, address, and phone number was provided to prospects. It would also penalize the sponsors, who would be required to give his prospect contact information for 10 other IBOs, any of whom might be happy to register the prospect themselves. Solution: Eliminate the requirement to provide 10 references. Problem 3: You would have to give every prospect a list of all lawsuits, arbitrations, or other legal claims for the past 10 years involving Quixtar or its IBOs where the plaintiff alleged fraud, misrepresentation, or unfair trade practices – regardless of whether or not the accusation was true. Among other problems, this requirement would open up Quixtar and other legitimate companies to false accusations. Meanwhile, dishonest companies would simply ignore the rule. Solution: Eliminate the requirement to disclose past litigation. Problem 4: You would have to make a different disclosure for every income claim. This would include any examples you might use during an opportunity presentation to illustrate how the Plan works. Solution: If disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for 'active' IBOs." Problem 5: You would be required to provide prospects with personal financial documents to back up ("substantiate") any income claim. Solution: IBOs should possess substantiation for any claim but should not be required to disclose it except when required by the FTC and similar state agencies in an agency investigation.